HSBC plans 10-year fixed-to-floaters with 4.5% initial rate, 7% cap

By Marisa Wong

Madison, Wis., Sept. 10 - HSBC USA Inc. plans to price fixed-to-floating notes due Sept. 26, 2023, according to an FWP filing with the Securities and Exchange Commission.

The coupon will be 4.5% for the first year. After that, it will be equal to the year-over-year change in the Consumer Price Index plus 125 basis points, subject to a minimum coupon rate of 0% and a maximum rate of 7%. Interest is payable monthly.

The payout at maturity will be par.

The notes (Cusip: 40432XKQ3) will price on Sept. 23 and settle on Sept. 26.

HSBC Securities (USA) Inc. is the agent.

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